Analyst Presentation

Aug 26, 2016

 Tata Motors
Statements in this presentation describing the objectives, projections, estimates and expectations of the Company i.e.
Tata Motors Ltd and its direct and indirect subsidiaries and its associates may be forward looking statements within
the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed
or implied. Important factors that could make a difference to the Companys operations include, among others,
economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which
the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors

Q1 FY17 represents the period from 1st April 2016 to 30th June 2016

Q1 FY16 represents the period from 1st April 2015 to 30th June 2015

Financials (other than JLR) contained in the presentation are as per Ind AS.

JLR Financials contained in the presentation are as per IFRS as approved in the EU

The Company has adopted Ind AS for its Standalone and Consolidated financials with effect from April 1, 2016, with
comparatives being restated. Accordingly, the impact of transition has been provided in the Opening Reserves as at April
1, 2015 and all the periods presented have been restated accordingly.
Table of Contents

Financial Highlights

Tata Motors Group-Standalone Business

Tata Motors Group-Jaguar Land Rover

Tata Motors Group-Way Forward

 Financial Highlights-Q1 FY 2016-17
Tata Motors Group- Consolidated Tata Motors Group-Standalone Tata Motors Group-Jaguar Land
(Rs in Crores) Rover (IFRS)
Business (incl Joint Operations)
(Rs in Crores) (GBP in Million)

Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16

Net Revenue 66,005 60,451 Net Revenue 10,423 9,354 Net Revenue 5,461 5,002

EBITDA 8,484 11,712 EBITDA 690 565 EBITDA 672 821

EBITDA % 12.9 19.4 EBITDA % 6.6 6.0 EBITDA % 12.3 16.4

PAT 2,236 5231 PAT 26 290 PAT 304 492

Higher volumes more than offset
by the adverse FX impact ,higher
depreciation and amortisation

Continued growth in the M&HCV
Solid sales volume and
and LCV segment. Car segment revenue but lower EBITDA
witnessed a very strong growth on due to Unfavorable FX impact
the back of recently launched Tiago and lower local market
incentive compared to Q1

Q1 FY 16 included additional other FY16
income (sale of investment) of Rs
324 crores
EBITDA margin excl FX
revaluation (as explained in

Improved EBITDA margin in the next slide) is around 14%,
Standalone business : 5.7% (vs
4.7% in Q1 FY 16)

For the presentation purpose, revenue has been taken as net of excise duty. EBITDA % is calculated on Revenue net of excise duty
Consolidated PAT is after minority interest and share of profit/(loss) in respect of associate companies.
Joint Operations included in Standalone financials are Tata Cummins Private Ltd and Fiat India Automobile Private Limited
Tata Motors Group-Jaguar Land Rover
FOREIGN EXCHANGE IMPACT-UNFAVOURABLE REVALUATION
Quarter ended 30 June

( millions, unless stated) 2016 2015 Change

Realized FX Hedges1 (123) (109) (14)

Revaluation of Current Assets/Liabilities and Other2 (84) 34 (118)
Total FX impacting EBITDA (207) (75) (132)

Revaluation of Undesignated Debt2 (23) 99 (122)

Unrealized FX Hedges2 21 72 (51)
Total FX below EBITDA (2) 171 (173)

Total FX impact on PBT (209) 96 (305)

End of Period Exchange Rates 30-

30-Jun-
Jun-16 30-
30-Jun-
Jun-15

GBP:USD 1.346 1.570

GBP:EUR 1.211 1.406
GBP:CNY 8.965 9.743

Memo:

1 Realised hedge gains/(losses) are driven by the difference between executed hedging exchange rates compared to accounting exchange rates
2 Exchange revaluation gains/(losses) reflect the movement in each end of period exchange rate
Tata Motors Group- Summary of Ind-AS changes
(Figures are for the quarter April to June 2015)
Particulars At Standalone level (Rs At Consolidated level (Rs
crores) crores)
Profit Reported as per IGAAP 257.57 2,768.91

Profit as per Ind-AS 289.84 5,231.03

Changes :-
Exchange movement impact on foreign (36.11) 2,145.35
currency instruments (earlier amortised
over the life of the instrument)
Effect of reassessment of deemed cost 48.18 48.18
of certain plant and equipment and
intangibles
Profit from Joint Operations 86.74

Reversal of gain on sale of Equity (80.38) (80.38)

investments now taken to OCI
Early adoption in Ind-AS of IFRS-9 742.97
(accounting for cross currency basis
spreads)
Provision under Ind-AS for expected (330.57)
credit losses
Others 13.84 (63.43)
Tata Motors Group-Operating profit performance-Q1 FY17 Snapshot
Standalone Business Performance :-
Standalone business reported a improvement in EBITDA Margin to 5.7%
which is an improvement of 100 bps Y-o-Y . This broadly reflects :-

M&HCV growth of 7.8% (Y-o-Y)

Solid LCV growth of 11.6% (Y-o-Y)

Car segment growth of 15.1% (Y-o-Y)

Ongoing cost reduction and other margin improvement initiatives

Jaguar Land Rover Business Performance :-

Jaguar land Rover EBITDA for Q1 FY17 was 672 mn , EBITDA margin at
12.3%; mainly impacted by :

 Higher wholesales and revenue offset by FX impact of 207 million

including revaluation of 84 million, mainly EUR payables resulting from
depreciation in the Pound following the BREXIT vote

 Lower local market incentive compared to Q1 FY16

EBITDA margin excluding FX revaluation is around 14%

Tata Motors Group-Standalone Business
 Tata Motors Group-Standalone Business :-Commercial Vehicles
Overall CV Industry continued its growth trajectory with
a growth of 11.0% Y-o-Y in Q1 FY 17
Total CV Volumes (including Exports), up 8.7
% YoY in Q1 FY17

Overall domestic CV volumes of the Company grew
CV Q1FY17 by 9.9% Y-o-Y in Q1 FY 17 with
MHCV(Dom.) 35,504
MHCV LCV Exports
M &HCV segment growth of 7.8 % Y-o-Y and
LCV(Dom.) 43,189
Exports 13,152
LCV segment growth of 11.6 % Y-o-Y
Total 91,845

Variable marketing expenses continues to remain high in

the Industry.

Exports up 2 % Y-o-Y.

Other key highlights in the Export markets were :-

84,522 8.7% 91,845
 Received order of 553 units of Tata Xenon Malaysia
 Launched PRIMA in Bhutan
 Launched new ULTRA in Kenya
Q1 FY16 Q1 FY17
Tata Motors Group-Standalone Business :-Passenger Vehicles
Passenger vehicle industry witnessed a growth of 7.4
Total PV volumes (including % y-o-y in Q1 FY 17. Domestic volume of TML in
exports) up 6.3% Y-o-Y in Q1 FY 17 passenger vehicles segment grew by 6.3% in the same
period.
Cars Utility vehicles & Vans Exports

PV Q1 FY17 Passenger car industry declined by 1% y-o-y. The car

Cars(dom.) 30,874
segment of TML outperformed industry with a growth
UVs & of 15.1% y-o-y on the back of strong growth of recently
Vans(dom.) 3,456 launched Tiago
Exports 664
Total 34,994
In April 2016, Company has launched the much awaited
Exciting, Dynamic Hatchback TIAGO with
 new Impact design

6.3%
32,917 34,994  new standards of fuel efficiency

 best in class connectivity and segment

Q1 FY16 Q1FY17 first applications like Turn-by-Turn Navi
app and the Juke-Car app
 Tata Motors Group-Jaguar Land Rover

TO BE THE WORLDS PERFORMANCE BRAND OF CHOICE MORE GREAT PRODUCTS

CUSTOMER FIRST
TO BE THE WORLDS PREMIUM SUV BRAND OF CHOICE
ENVIRONMENTAL
INNOVATION
 Tata Motors Group-Jaguar Land Rover

Wholesales and Retail volumes (excluding CJLR) for Q1 FY 17 stood at 120,776 units and
Q1 FY17 (Wholesales excl
118,704 units , respectively .CJLR wholesales and retail volumes stood at 13,558 and 14,039 units
CJLR)

Overseas
North
(incl Asia

Retail Sales up in all the Regions reflecting strong sales of F-PACE, XE and DISCOVERY SPORT- America
Pac)
24.6 %
16.7%
North America up 17%; UK up 18% , China (incl JV) up 19%, Europe up 16%, Overseas up 6% China Region
10.5%

UK

Total Capex and Product development spend for the quarter was 692 mn. Post this spend free Europe 18.8%
cash flow was (633)mn, driven by 646m of seasonal and launch-related increases in inventory. 29.4%
(Free Cash flow in Q1 FY16 was (834)mn, however, full year free cash flow in FY 16 was 791mn)

Q1 FY16 (Wholesales excl

Cash and financial deposits stood at 3.7bn and undrawn committed bank lines at 1.9bn CJLR)

North
Overseas America

Further 50mn of recoveries related to the Tianjin Port explosion, recognized as exceptional item. (incl Asia 20.0%
Pac)
17.8%

PBT of 399 mn, down from 638 mn in Q1 FY 16 broadly reflecting China Region
14.1% UK
Lower EBITDA due to the reasons as explained earlier 19.1%

Higher depreciation and amortisation Europe

29.0%

Share of China JV Profits for Q1 FY 17 was 45 mn

Tata Motors Group-Jaguar Land Rover-Exciting New Products
RECENT AND UPCOMING PRODUCTS TO DRIVE FUTURE GROWTH

F-PACE Launched in April 2016 XE Launched in US in May 16

Evoque Convertible Launched in June 2016 China JV XFL Launching H2 2016

Tata Motors Group-Jaguar Land Rover- Other Developments
MANUFACTURING AND OPERATIONS

Special Vehicles Operations Brazil Plant Halewood Plant

Brand new Technical Centre, near
Coventry, representing a 20m
investment
Comprises of:
 Manufacturing Facility
 Paint Facility
 Technical Suite
 VIP Commissioning/Viewing Suites
Plant opened in June 2016
Producing Range Rover Evoque
and Discovery Sport
Sales of locally produced vehicles
beginning later this year
The Halewood plant, in Liverpool,
earned two Manufacturer of the Year
awards during June
13 awards since 2011
5 years of production for the Range
Rover Evoque with over 500k units
produced to date
June 23-BREXIT REFERENDUM-IMPLICATIONS FOR JLR
The implications for JLR of BREXIT include :-

The extent to which the Pound remains weaker.

Any incremental tariffs that might result following exit from the EU

Any impact on economic growth and consumer confidence in the UK and the EU, recognizing over 50% of sales are to other
markets and JLRs strong and growing model line up

Currency Implications

JLR sells about 80% of vehicles outside the UK (24% Europe, 19% China, 19% US, 18% other)

JLR sources about 50% of components from the EU with the UK accounting for the majority of other material and operating
costs

JLR would benefit from a continued weaker Pound exchange rates as a result of Brexit (offset partially in the case of the
Euro).Benefit would be realized over a period of time as past hedges unwinds.

Tariff implications

UK vehicle exports into the EU (c. 24%) could become subject to tariffs depending on trade agreements to be
negotiated with the EU. Similarly, vehicles manufactured in the EU and imported into the UK could also be affected.

Components sourced from the EU could also become subject to tariffs, however, these would be recoverable on
vehicles subsequently exported out of the UK (presently c. 80%).
Tata Motors Group-Way Forward
 Tata Motors Group Standalone Business - Way Forward
 Economy, driven by government led expenditures and stimulus, is expected to support the Auto Sales growth in FY 17
 Company will continue to explore capital optimization through better operating efficiencies in working capital etc and
monetization of non-core assets and some of its investments

Commercial Vehicles
Despite some market headwinds since June 2016, we continue to expect growth momentum for the full year in M&HCV, though
somewhat uneven, mainly triggered by post good monsoon demand, continued replacement and fleet expansion and pre-buying before
countrywide adoption of BS IV from 1st April 2017. Similarly, we expect positive growth in the buses & LCV segment during the year.

Wide and compelling product range with several new launches in FY17 provides strong foundation for growth :-

M&HCV- Expansion of Prima LX and new Signa Range across tonnages and applications

LCV & ILCV- Expansion of the new Ultra Range across tonnages and applications

SCV & Pick up :- refreshes/variants to further complement

and strengthen the ACE and Super ACE family

Export growth will continue to be high focus .

Company has a good pipeline of Defense orders- received and expected.

26
 Tata Motors Group India Business - Way Forward
Passenger vehicles
Company will launch new products consecutively into the market
as per a robust product plan.

Focus on existing product volumes will continue

Dealer network expansion will also be a focus area

Customer centricity will be continuously strived for, as reflected in

the recently improved ranking in JDP CSI of 3rd place last year

Vision Values
As a High Performance Organization, Integrity
we are, by FY2019 Teamwork
Among the Top 3 in Global CV and Accountability
Domestic PV Customer Focus
Achieving Sustainable Financial Excellence
Performance Speed
27
Delivering Exciting Innovations
 Tata Motors Group Jaguar Land Rover- Way Forward
INVESTMENT TO DRIVE PROFITABLE GROWTH

JLRs strategy continues to be to invest in new products, technology and manufacturing capacity to grow profitably ;

We expect investment spending in the region of 3.75 bn in 2016/17.

Jaguar Land Rover plans to continue to build on recent successful product launches with the sales ramp up of the
Jaguar F-PACE , XF long wheel base in China, the Evoque Convertible and future new model launches yet to be
announced.

We will continue to closely monitor and assess market conditions in the UK and EU post Brexit as well as China as the
target GDP growth rate comes down

The new products are expected to drive solid profitable volume growth for JLR going forward and operating cash-flow
to help fund ongoing investment.

29
Tata Motors - Contact Information :
Press Presentation is available on our website
http://www.tatamotors.com/investors/investors.php

Thank You